cutting 40% of the payments company\u2019s workforce<\/a>, or more than 4,000 employees, betting artificial-intelligence tools can fill the gap.<\/p>\nHere\u2019s how he explained the decision.<\/p>\n
Dorsey said Block, which owns Square and Cash App, is financially sound. Instead, the tech entrepreneur argues that companies need flatter structures and fewer employees to thrive in the AI era.<\/p>\n
\u201cIntelligence tools have changed what it means to build and run a company,\u201d Dorsey said Thursday on a call with analysts. \u201cA significantly smaller team using the tools we\u2019re building can do more and do it better.\u201d<\/p>\n
Block is already seeing the change internally, he added, \u201cand intelligence tool capabilities are compounding faster every single week.\u201d<\/p>\n
A big challenge for companies wanting to restructure is how to minimize disruption and maintain the morale of employees sticking around. In a memo to Block staff that was posted on X, Dorsey said he had two options: To cut gradually over time or \u201cbe honest about where we are and act on it now.\u201d<\/p>\n
He favors the second option. \u201cRepeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead,\u201d Dorsey wrote.<\/p>\n
Employees across companies should brace themselves for similar large-scale layoffs, Dorsey predicted.<\/p>\n
\u201cWithin the next year, I believe the majority of the companies will reach the same conclusion and make similar structural changes,\u201d Dorsey told analysts. \u201cI don\u2019t think we\u2019re early to this realization. I think most companies are late.\u201d<\/p>\n
Large-scale layoffs at Block won\u2019t just impact the company\u2019s workers. Its customers will feel the shift too, Dorsey said.<\/p>\n
The use of AI tools means customers will be able to build their own features directly, he said, on top of the company\u2019s capabilities.<\/p>\n
Dorsey acknowledged that such a big cull could risk Block\u2019s ability to serve its customers in the short term. But he remains defiant.<\/p>\n
\u201cA decision at this scale carries risk. But so does standing still,\u201d Dorsey said in his memo.<\/p>\n","protected":false},"excerpt":{"rendered":"Jack Dorsey said employees across companies should brace themselves for similar large-scale layoffs. – jim watson\/AFP\/Getty Images Jack…\n","protected":false},"author":2,"featured_media":313405,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,5598,85,46,156351,125],"class_list":{"0":"post-313404","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-block","12":"tag-il","13":"tag-israel","14":"tag-jack-dorsey","15":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/313404","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=313404"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/313404\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/313405"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=313404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=313404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=313404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"Jack](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/02\/8322c59e23680b23bcb310541fbe511f.jpeg\")
Jack Dorsey said employees across companies should brace themselves for similar large-scale layoffs. – jim watson\/AFP\/Getty Images <\/p>\n